Industry and Technology

The Canadian parliamentary committee on Industry and Technology met to discuss the federal government's policies related to artificial intelligence (AI). The committee heard from several experts in the field, including professors Michael Geist, Colin Bennett, and Yoshua Bengio, who shared their insights and recommendations. The discussion covered a range of topics, including the need for updated privacy laws, AI transparency, and the potential risks and benefits of AI development. Michael Geist emphasized the importance of balancing innovation with safeguards against potential risks, suggesting that current proposals risk doing more harm than good. He recommended prioritizing modernized privacy laws and an AI transparency act. Colin Bennett echoed Geist's concerns about data sovereignty and the need for an overarching statutory framework for AI. He also highlighted the importance of privacy protection policies and the need for effective redress mechanisms for individuals affected by automated decisions. Yoshua Bengio warned about the potential risks of unsafe AI development, including the displacement of jobs and the use of AI for malicious purposes. He stressed the need for international cooperation and the development of safe and trustworthy AI. Committee members raised questions about the potential impact of AI on employment, national security, and the digital divide. The witnesses provided recommendations on how the government can better prepare for the challenges and opportunities presented by AI. Later in the meeting, the committee heard from Carys Craig, Wendy Cukier, and Ali Dehghantanha. Craig spoke about copyright law and AI, cautioning against expanding copyright protections as part of an AI regulatory package. Cukier discussed the importance of AI adoption by small and medium-sized enterprises (SMEs) and the need to address bias in AI systems. Dehghantanha focused on the need for continuous AI risk monitoring and post-deployment assurance. The committee members discussed the need for a balanced approach to AI regulation that promotes innovation while mitigating risks. They also explored ways to support SMEs in adopting AI and to ensure that AI systems are developed and used responsibly and ethically. The committee agreed to continue its study of AI policies and to consider the recommendations provided by the witnesses.

The Industry and Technology Committee met to discuss policies related to electric vehicles (EVs) in Canada. Witnesses from the Canadian Automobile Dealers Association (CADA), Clean Energy Canada, and Electric Mobility Canada shared their perspectives. CADA expressed support for the government's new auto strategy but urged for the immediate removal of the EVAS regulation and provincial EV mandates, arguing they create uncertainty and trade barriers. Clean Energy Canada highlighted the global shift towards EVs and emphasized the need for strong tailpipe standards and investments in charging infrastructure to boost the domestic EV market. Electric Mobility Canada supported the auto strategy, emphasizing the importance of market predictability and collaboration with other countries to develop the EV industry.

The House of Commons Standing Committee on Industry and Technology met to begin a new study on the impact of artificial intelligence (AI) on Canada. The committee heard from experts in AI safety, computer science, and innovation. Witnesses discussed both the potential benefits and significant risks of AI, including job displacement and national security threats. They emphasized the need for Canada to develop its own AI capabilities and infrastructure to maintain economic and technological sovereignty. Wyatt Tessari L'Allié, from AI Governance and Safety Canada, warned about recent advancements in AI agents, which can act independently and pose new security risks. He suggested a moratorium on the latest AI agents and called for better monitoring and defense strategies. Professor David Duvenaud from the University of Toronto raised concerns about AI potentially making human workers obsolete, leading to economic and social challenges. He stressed the need for global coordination to address these issues. Dugan O'Neil, from Simon Fraser University, highlighted the importance of investing in Canadian AI research and infrastructure to ensure that Canada remains competitive. He also mentioned the convergence of AI and quantum technologies as a unique opportunity for Canada. Julien Billot, CEO of Scale AI, spoke about the need for Canada to build a sovereign AI value chain to secure its technological and economic independence. Committee members discussed potential legislation and the need for a national conversation on AI. Some members suggested establishing a permanent task force on AI, possibly chaired by the Prime Minister, to coordinate efforts across various government departments. The committee also explored how to balance innovation with responsible AI development and regulation. The committee will meet again to continue the study.

The Industry and Technology Committee met to discuss the Budget 2025 Implementation Act. Minister of Industry Mélanie Joly explained how the proposed law aims to boost Canada's industrial strategy by supporting key sectors like clean technology, advanced manufacturing, and critical minerals. She emphasized the need for quick action to provide businesses with the confidence and predictability they need to invest in Canada. She also announced a new working group with Ontario to strengthen the auto industry. During the meeting, committee members questioned the Minister about various aspects of the proposed law. Raquel Dancho raised concerns about allowing taxpayer-funded subsidies for electric vehicles (EVs) made in the United States, arguing it's unethical given the challenges facing the Canadian auto sector. Minister Joly defended the strategy, stating it supports auto production in Canada and helps the industry transition to electrification. She said that the subsidies are available for American-made EVs because there are American automakers in Canada and the government wants to keep their footprint in Canada. Dominique O'Rourke highlighted the importance of passing the budget quickly to provide businesses with critical supports, particularly in agribusiness, manufacturing, and trades training. Gabriel Ste-Marie inquired about data portability and greenwashing regulations within the proposed law. Kyle Seeback shared concerns from unemployed auto workers about subsidizing American EVs. Parm Bains discussed how the proposed law would strengthen Canada's food sovereignty and support the steel sector. Michael Guglielmin questioned a provision that would allow the government to exempt individuals or organizations from federal laws. Michael Ma asked how the auto strategy would define the Canadian auto industry in the coming years. Raquel Dancho proposed a motion to study the federal government's EV policies, including those related to Chinese EVs. After some discussion and amendments, the committee agreed to undertake the study, inviting the Minister of Industry to testify for at least two hours. The study will proceed after the completion of reports on Canada's productivity gaps and the Defence Industrial Strategy, and will run at the same time as the study on AI adoption in strategic industrial sectors.

The Industry and Technology Committee met to discuss parts of the proposed law to implement the 2025 budget, focusing on how it affects privacy. The main topic was data mobility, which would allow people to easily share their personal information between companies. The committee wanted to understand how this new law would impact Canadians' privacy. Philippe Dufresne, Canada's Privacy Commissioner, spoke about the importance of protecting personal data. He supports the idea of data mobility but wants to make sure there are strong rules to protect people's information. He also mentioned the need to update Canada's privacy laws to deal with new issues like deepfakes and data breaches. Dufresne emphasized that his office should be consulted when the government makes regulations about data mobility. Committee members asked Dufresne about transparency, the burden on small businesses, and how to handle data breaches. Dufresne said that while he is optimistic that the government will consult with his office on regulations, he currently lacks the power to issue fines, which he believes is a necessary tool. He also highlighted the importance of educating Canadians about data protection and ensuring strong enforcement of privacy laws. The committee did not make any decisions during this meeting, but it gathered information to help shape future recommendations.

The Industry and Technology Committee met to discuss the situation with Stellantis, a car company, and its assembly plant in Brampton, Ontario. The main focus was on whether Stellantis was keeping its promises to Canadian workers and the government, especially after announcing changes to production plans. The meeting featured Minister of Finance François-Philippe Champagne, who defended the government's agreements with Stellantis and emphasized the importance of the automotive industry to Canada. He stated that the government is disappointed by Stellantis's actions and is working to hold them accountable. During the meeting, committee members questioned Minister Champagne about the details of the contracts with Stellantis, particularly regarding job guarantees and the potential for the company to reduce its workforce. Some members expressed concern that the contracts allowed Stellantis to cut jobs while still receiving government support. Minister Champagne argued that the contracts should be viewed as a whole, including another agreement with NextStar, and that they provide a floor for job numbers over a 12-year period. He also clarified that the government has disbursed $40 million to Stellantis, far less than some reported figures. Other topics discussed included support for artificial intelligence development, the aerospace industry, and homelessness programs. A member from the Bloc Québécois raised concerns about a proposed law that could allow the government to bypass existing laws in the name of innovation. Minister Champagne responded that this is a common practice in other G7 countries to encourage innovation in specific industries. The committee agreed to share international examples of this practice with the members. Overall, the meeting was at times tense, with disagreements between committee members and the Minister regarding the interpretation of the Stellantis contracts. The committee members requested more information on the contracts and the government's plans to ensure Stellantis meets its commitments. The meeting ended with well wishes for the holiday season.

The Industry and Technology Committee met to discuss recent job losses in the Canadian steel industry, specifically focusing on Algoma Steel. A Conservative member, Ms. Dancho, introduced a motion to condemn the government's handling of the situation, including a $400 million loan to Algoma Steel approved shortly before 1,000 layoffs were announced. The motion also called for key figures like the Industry Minister, Finance Minister, and the CEO of Algoma Steel to testify before the committee. Committee members debated the motion, with Conservatives arguing that the government is handing out money without securing job guarantees, leading to worker layoffs. They emphasized the need for transparency and accountability. Liberal members defended the government's actions, stating that the investments were helping to save jobs and transition the steel industry to greener manufacturing. They also pointed to external factors, like trade disputes with the United States, as contributing to the problem and highlighted budget measures aimed at supporting affected workers. Mr. Erskine-Smith, a Liberal member, suggested that the motion was premature in reporting to the House before conducting a thorough study. Mr. Ste-Marie from the Bloc Québécois supported the motion and expressed solidarity with the steelworkers. Ultimately, Mr. Ste-Marie moved to adjourn the meeting, which passed with a vote of 5 to 4, ending the discussion without a resolution on the initial motion.

The Industry and Technology Committee met to discuss Canada's productivity, focusing on the outdoor recreation sector and the role of polytechnic institutions. Natalie Knowles from Protect Our Winters Canada highlighted the significant economic impact of outdoor recreation, estimating it contributes $101.6 billion annually and supports over one million jobs. She advocated for government recognition and investment in this sector to boost overall Canadian productivity, citing benefits like improved mental and physical health for workers. Fred Meier, President of Red River College Polytech, emphasized the crucial role colleges and polytechnics play in providing skills and driving innovation. He pointed out that these institutions are underfunded compared to universities, receiving only a small fraction of research funding despite their significant contributions to industry-driven applied research. Meier called for greater recognition and equitable funding for polytechnics to enhance their ability to support small and medium-sized enterprises (SMEs) and address the skills mismatch in Canada. Committee members questioned Knowles and Meier on various aspects of their presentations. Discussions covered the impact of climate change on outdoor recreation, the role of polytechnics in bridging the advanced manufacturing gap, and the importance of intellectual property protection. The committee also debated a motion regarding unjustified American tariffs on Canadian industries, including the auto sector, but did not reach a resolution due to time constraints.

The Industry and Technology Committee met to discuss Canada's defence industrial strategy. Witnesses from Galaxia Mission Systems, Samuel Associates Inc., and Solace Power Inc. shared their perspectives on how to strengthen Canada's defence capabilities and support Canadian businesses. The committee members questioned the witnesses on topics such as procurement processes, investment in Canadian companies, and the role of government in fostering innovation.

The Industry and Technology Committee met to discuss Canada's productivity challenges and potential solutions. Witnesses from various organizations, including Danby Appliances, Universities Canada, the Centre for the Study of Living Standards, the Bank of Canada, and the CCTT network, shared their perspectives. The committee members questioned the witnesses on topics such as government spending, regulations, education, technology adoption, and business investment. They are trying to figure out why Canada's productivity is so low. Jim Estill, CEO of Danby Appliances, argued that government spending can negatively impact productivity and that current grants favor start-ups and large companies. He suggested that existing programs like SR and ED should be expanded to include AI training and implementation. Gabriel Miller, President of Universities Canada, emphasized the importance of universities in driving economic growth and innovation. He recommended engaging universities in major projects, partnering with them to advance AI adoption, and strengthening university tech transfer infrastructure. Stephen Tapp, CEO of the Centre for the Study of Living Standards, highlighted Canada's productivity emergency and the need to incentivize technological adoption and investment. Eric Santor, Advisor to the Governor of the Bank of Canada, stated that Canada's productivity record is poor and deteriorating. He emphasized the need to create conditions that spur business investment, encourage risk-taking, and ensure workers have the necessary skills. Ludovic Soucisse, CEO of the Réseau des CCTT, discussed the role of college technology transfer centers in supporting SMEs and recommended including applied research in federal innovation programs. Richard Dias, a global macro strategist, suggested strengthening human capital, competition, and business investment to improve productivity. Committee members raised concerns about the impact of government spending and regulations on productivity. They also questioned whether universities are focusing enough on core competencies and whether Canada is effectively converting research into domestic capital formation. There was discussion about the potential of AI to boost productivity, as well as its potential negative impact on student education. The committee explored various policy options to incentivize business investment and attract talent to Canada. No specific decisions were made during the meeting, but the committee members gathered information and perspectives from the witnesses to inform their ongoing study on productivity. The next steps will likely involve further analysis of the issues and potential policy recommendations.

The Industry and Technology Committee met to discuss Canada's defence industrial strategy. Witnesses from L3Harris Canada, the Canadian Corps of Commissionaires, and Quantum Industry Canada shared their perspectives. The discussion covered topics such as long-term defence strategies, protecting critical infrastructure, and the importance of quantum technology in defence. Richard Foster from L3Harris Canada emphasized the need for a long-term defence strategy that survives election cycles, strategic partnerships with trusted companies, and negotiating in-service support for major equipment. He also highlighted Canada's competitive advantage in the global export market and the importance of an industry-focused force development structure within the Canadian Armed Forces. Michael Langlais from the Canadian Corps of Commissionaires stressed the importance of protecting critical infrastructure and the industrial base, noting the increasing threats in cyberspace and the physical vulnerabilities of communities. He suggested simplifying procurement policies, improving communication between defence and public safety actors, and providing clear guidelines for resilience in business continuity measures. Lisa Lambert from Quantum Industry Canada highlighted the potential of quantum technology to reshape the economy, security, and defence. She emphasized the need for modern partnership models that allow the Department of National Defence and the Canadian Armed Forces to work directly with emerging industries like quantum, validating capabilities early and scaling sovereign technologies quickly. The committee discussed the need to balance economic benefits with strategic considerations, ensuring that defence investments contribute to both prosperity and national security.

The Industry and Technology Committee met to discuss Canada's productivity gap and how to boost national competitiveness. Witnesses shared their perspectives on the challenges and opportunities for improving productivity across various sectors of the Canadian economy. Key speakers included Professor Michael Veall, who emphasized the need for urgent action but cautioned against panicking, and Michael Graydon, who highlighted the regulatory burdens faced by the food and consumer products industry. Namir Anani focused on the importance of technology adoption, skills development, and innovation-ready regulations. Frances Donald from RBC emphasized that there is no 'silver bullet' to solve the productivity problem, but that action must be taken. Theo Argitis from the Business Council of Canada stated that Canada's productivity crisis is really an investment crisis. Committee members questioned the witnesses on topics such as attracting capital investment, the impact of regulations on businesses, and the effectiveness of government policies. There was discussion about the recent federal budget and its potential to stimulate capital investment and promote innovation. Some committee members expressed concern that the budget did not go far enough in addressing the underlying issues hindering productivity growth. Witnesses offered recommendations for improving productivity, including reducing regulatory burdens, modernizing infrastructure, and creating a more competitive tax environment. They also emphasized the importance of investing in skills development and promoting technology adoption across all sectors of the economy. The committee acknowledged the need for a comprehensive strategy to address the productivity gap and committed to further study and discussion on the issue. The committee agreed to send additional information to the clerk to be distributed to members.

The Industry and Technology Committee met to discuss Canada's defence industrial strategy. Witnesses spoke about the need for Canada to invest in its defence industry to protect its sovereignty and support its allies. They discussed challenges such as a lack of investment in Canadian intellectual property, difficulties accessing capital for small and medium-sized businesses, and the need for a clear national security strategy to guide defence procurement. The committee also heard about the potential for Yellowknife to serve as a hub for Arctic defence operations and cold-weather testing. Christian Leuprecht, a professor at the Royal Military College and Queen's University, argued that Canada needs to increase energy exports to Europe to fund defence investments and support its allies. He emphasized the importance of investing in design authorities and research security. Katheron Intson, CEO of Sentinel Research and Development, highlighted the need to support Canadian companies building original intellectual property and to reform government-backed venture capital to include defence companies. Ben Hendriksen, the mayor of Yellowknife, and Stephen Van Dine, the city manager, spoke about the potential for Yellowknife to serve as a strategic location for defence industry development and cold-weather testing. During the second half, witnesses discussed the trade-offs between alliances and operational advantage, sovereignty and industry, and money. Kevin Reed, President of Defence, Security & Resilience Bank Development Group, talked about the need for private sector capital to build out the defence industrial plan. Richard Shimooka, Senior Fellow, Macdonald-Laurier Institute, emphasized the need for the defence industrial strategy to be subservient to the defence policy of the country. Philippe Lagassé, Associate Professor, Carleton University, spoke about the need for a balance between Canadian sovereign capabilities and Canadian industry. Committee members questioned the witnesses on a range of issues, including the role of energy exports in funding defence, the importance of supporting Canadian intellectual property, and the potential for Yellowknife to serve as a hub for Arctic defence operations. They also discussed the need for a clear national security strategy to guide defence procurement and the challenges of balancing competing priorities. The committee agreed to invite Doug Guzman, the CEO of the Defence Investment Agency, to appear as a witness at a future meeting.

The Industry and Technology Committee met to discuss the situation with Stellantis and the Canadian auto industry. Minister of Industry Mélanie Joly testified about Stellantis's decision to move production of the Jeep Compass from Brampton, Ontario, to Illinois, which the government views as a broken promise. She stated the government is starting a formal dispute resolution process to try to bring back production to the Stellantis Brampton facility and will recover taxpayer money if Stellantis doesn't honor its commitments. Conservative committee members questioned Minister Joly about whether the contracts with Stellantis included job guarantees, particularly for the Brampton plant. They expressed concern that billions of dollars in taxpayer money were being given to a foreign-owned company without sufficient guarantees for Canadian jobs. Minister Joly insisted that the contracts did include job guarantees and that the government would hold Stellantis accountable. Bloc Québécois members raised concerns about the PACCAR plant in Sainte-Thérèse, Quebec, which is affected by American tariffs. They asked about potential government support for the plant and the possibility of creating a targeted wage subsidy for workers who lost their jobs. The committee agreed to request a table showing the different types of assistance provided to the automotive industry, broken down by province.

The Industry and Technology Committee met to discuss the state of the Canadian auto industry, particularly focusing on Stellantis's commitments. Jeff Hines, President of Stellantis Canada, addressed the committee, highlighting the company's 100-year history in Canada and recent investments, but also acknowledging the difficult decision to move Jeep Compass production from Brampton to Illinois. He cited economic uncertainty and trade challenges as key factors, while reaffirming Stellantis's commitment to Canadian manufacturing and innovation. Committee members questioned Hines about job guarantees tied to government subsidies and the company's plans for the Brampton plant. Raquel Dancho (Conservative) pressed Hines on whether government agreements included job guarantees, expressing concern over the lack of clarity. Dominique O'Rourke (Liberal) emphasized the government's support for the auto sector and the disappointment caused by Stellantis's actions, questioning the company's contractual obligations. Gabriel Ste-Marie (Bloc Québécois) expressed concern about the erosion of the auto industry in Canada due to U.S. trade policies and sought guarantees about Stellantis's future operations in Canada.